The Press. WEDNESDAY, MAY 23, 1906. NATIONAL ANNUITIES AND THE FRIENDLY SOCIETIES.

Press, Volume LXII, Issue 12509, 23 May 1906, Page 6

The Press. WEDNESDAY, MAY 23, 1906. NATIONAL ANNUITIES AND THE FRIENDLY SOCIETIES.

A letter of considerable importance from the Premier was laid beforo tho Conference of Friendly Societies in Wellington yesterday. In this communication Mr Seddon states what he proposes to do in regard to Friendly Societies in the National Annuities Bill to bo introduced into Parliament next session. Tlio Premier very properly recognises the good already done by the Friendly Societies of tho colony, and is alive to the importance of not crippling their operations. It is not at all certain that the establishment of Old Age Pensions has not interfered to some extent with tbo work cf thete excellent institutions, and Mr &-ddon no doubt realists that unless some special provision is made in their behalf, tho competition of his proposed national annuities echeaie might very p»-J?ibly kill some of tbo weaker lodges and.societies. Ho therefore propottos, iv connection with his tchemc, to make some special concessions to

members of Friendly Societies. In the case of allowances to members over 65, a certain proportion will be paid by tho Government. The lodges would go on making the payments as ait present, but at the end of every thitrd year the Government would make a calculation to ascertain what sum the lodge was entitled to by way of refunds in the case of each member. These would be on a eliding soale, ranging from 10 to 50 per cent of the weekly allowance, according to family and other circumstances of the member, while drawing sick pay. This eliding scale, we aro told, "would take into account tho civil "condition of the member—i.e., whether I " married or single, and tho number of I " children—as points which affect the "welfare of the community, the design being to encourage such modea "of life (viz., thrift, marriage, etc.) "which are conducive to the national " welfare." In the case of members under 65 the Government would not make a refund in respect of the weekly allowance for what is known as "acute" sickness—i.e., sickness during the first twelve months after the commencement of the attack—but for all oases of sickness or other infirmity, where tho incapacitated member is or will be drawing sick pay continuously for more than twelve months, it is proposed to give a refund on another sliding soale, tho percentage increasing as the age of the member diminishes. It is found by experience that payment for ohronic sickness on young or middle-aged members constitutes a heavy, and in some cases, dangerous charge for a small lodge, and there is no doubt that the Government proposals would, to a large extent, remove the risks of insolvency from this cause. Besides giving these subsidies to the lodges, 'Mr Seddon proposes to give a special subsidy of 5 per cent, to -members of Friendly Societies who may apply for deferred annuities under his national annuities scheme. Very properly, however, as it seems to us, half of this subsidy will, in tlie .societies pronounced to havo an actuarial deficiency, be devoted to strengthening the solvency of the sick and funeral fund, the other half going to increase the annuity of the individual member. As regards the general annuities -to he taken out by persons not belonging to any Friendly Societies, it is proposed to subsidise those from the Treasury in accordanoe with a sliding scale, which will have the effect of increasing the annuities by amounts ranging from 10 to 45 per, cent., acoording to the family and other circumstances of the applicant. It as dmpocßible for us, or anyone else, to express offhand an opinion as to the details of this schema which, will bo of muoh vaflue, but we have no hesitation; in saying that the principle is one which deserves the most cordial approval. Mr Seddon, in fact, is doing now what we and' various members of the Opposition party urged very strongly ought to bo dona when the Old Ago Pensions Dill was brought down. That measure offered no encouragement to private thrift, no assistance to the FiOendly Societies—in fact, At& effect was undoubtedly inimical to both. Mr Seddon. has now found out that thrift— whither exorcised individually or in a oorpcrato capacity—is among tho most important saving virtues of a nation, and one which the State ought to on,oourage. Tlie chief objection to which his present proposals seem open is that they are a little tco elaborate—that Mr Seddon refines a little too much nnd aims nt too much differervtiation. Possibly, by the time the Bill gets through tho Hou-e, the details will become simplified. Nevertheless, tlie proposals bear the stamp of having been framed on very capable advice, and in many respects, we think, the Bill is one of the most important associated with Mr Seddon's name, and one likely to do I him very great credit should it be car- ] ried out in a practical shape. Tho Friendly Societies' Conference will no doubt giro it their most careful consideration, and, we hope, wall be abb to furnish some useful suggestions for its improvement in matters of detail.